President's Letter to Shareholders
July 31, 2017
Dear Fellow Shareholders,
On July 26, 2017, the Company announced that Daewoo Minerals Canada Corporation (“DMC”), a Canadian subsidiary of POSCO Daewoo Corp., one of South Korea’s leading trading corporations, had exercised its right to earn an additional 30% project interest, bringing their total to 35% in the Kwanika Copper Gold project, by funding the next $7 million expenditure subject to finalizing and executing the full Joint Venture Agreement for the project.
Within the next 60 days the partners will establish a joint venture company, finalize the full joint venture agreement, DMC will contribute their current 5% interest plus $7 million in cash and Serengeti will contribute an additional 30% Kwanika property interest to the new joint venture company. The partners are currently finalizing a plan and budget to advance the project through completion of a Pre-feasibility Study (PFS) including funding a significant drilling program and initiating other activities consistent with PFS level studies. Serengeti will remain as project operator and will be entitled to charge a 10% operator’s fee on expenditures, so long as we maintain a majority interest.
Earlier this year a Preliminary Economic Assessment (PEA) was completed by an independent engineering firm and an independent NI 43-101 Technical Report was filed on SEDAR. The PEA evaluated a 15,000 tonne per day combined open pit and underground mining operation, centered on the highest grade portion of the Central and South Zones on the Kwanika property. The PEA identified a project of economic merit and recommended advancing the project to a higher level of study leading to a Pre-Feasibility Study and eventually to a Feasibility Study.
The Company is also in a much improved financial position, with working capital at the end of Q1 of $335,000 and just recently further strengthened that position by raising $825,000 in a flow through share offering. Proceeds of this recent financing will be used for continued exploration and drilling on a number of the Company’s other properties such as the 56.3% owned Milligan West property jointly held with Fjordland Exploration and the 100% owned UDS property located next to the Kemess Mine. Drilling on one or possibly both properties, testing targets with the potential to discover new copper-gold systems is planned within the next two months, ahead of our planned drilling program at Kwanika which is scheduled to start in late September.
The coming year should be an exciting one for the Company and we look forward to sharing that success with you. As always we welcome your calls and emails, or visit our website at www.serengetiresources.com to track our progress.
Thank you for your continuing interest and support.
David W. Moore
President & CEO
This document contains “forward-looking statements” within the meaning of applicable Canadian securities regulations. All statements other than statements of historical fact herein, including, without limitation, statements regarding exploration plans and other future plans and objectives, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and future events and actual results could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from our expectations as well as a comprehensive list of risk factors are disclosed in the Company’s documents filed from time to time via SEDAR with the Canadian regulatory agencies to whose policies we are bound. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and we do not undertake any obligation to update forward-looking statements should conditions or our estimates change, other than as required by law and readers are further advised not to place undue reliance on forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this communication.